STEEL

A Federal Register Notice published on April 26 provided additional information to industry on the Department of Commerce’s investigation of steel imports and U.S. national security.

We learned a three-hour public hearing will be held on May 24 at DOC and that interested parties must request to speak by May 17. The requests need to include a written summary of the planned presentation. Written comments will also be accepted until May 31.

DOC provided a list of criteria it is interested in learning about, as they relate to national security:

  • Quantity of steel or other circumstances related to the importation of steel.
  • Domestic production and productive capacity needed for steel to meet projected national defense requirements.
  • Existing and anticipated availability of human resources, products, raw materials, production equipment, and facilities to produce steel.
  • Growth requirements of the steel industry to meet national defense requirements and/or requirements to assure such growth.
  • The impact of foreign competition on the economic welfare of the steel industry.
  • The displacement of any domestic steel causing substantial unemployment, decrease in the revenues of government, loss of investment or specialized skills and productive capacity, or other serious effects.
  • Relevant factors that are causing or will cause a weakening of the U.S. national economy.

Five general categories of steel are being looked at: flat products, long products, pipe and tube products, semi-finished products, and stainless products. The notice also refers to “specialty steel alloys that require unusual production skills and are used for armor, vehicles, ships, aircraft, and infrastructure.”

Because the scope remains overly broad, the Section 201 Steel Safeguard of 2001-2002 may serve as a general guide. The following categories of products were targeted in that proceeding:

  • Certain carbon flat-rolled steel, including carbon and alloy steel slabs.
  • Plate (including cut-to-length plate and clad plate).
  • Hot-rolled steel (including plate in coils).
  • Cold-rolled steel (other than grain-oriented electrical steel.
  • Corrosion-resistant and other coated steel.
  • Carbon and alloy hot-rolled bar and light shapes.
  • Carbon and alloy cold-finished bar.
  • Carbon and alloy rebar.
  • Carbon and alloy welded tubular products (other than oil country tubular goods).
  • Carbon and alloy flanges, fittings, and tool joints.
  • Stainless steel bar and light shapes.
  • Stainless steel rod.
  • Carbon and alloy tin mill products.
  • Stainless steel wire.

The measures imposed were subject to significant product exclusions. Pursuing a similar product-exclusion strategy in the new Section 232 proceeding will likely be important for affected companies.

The timeline for the steel proceeding is shown below.

Request to Appear at Public Hearing

May 17

Public Hearing

May 24

Submission of Post-Hearing Comments or other Written Comments

May 31

Completion of DOC investigation

January 15, 2018*

Presidential Determination

April 16, 2018*

President Informs Congress

May 16, 2018*

* At the latest

ALUMINUM

On April 27, President Trump directed an investigation into the impact of aluminum imports on U.S. national security.

This investigation is being held under the same authority as the previously announced probe on steel, section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862). As with steel, DOC is charged with determining whether aluminum is being imported into the U.S. in such quantities or under such circum­stances as to threaten to impair national security. DOC has 270 days to conduct its investigation and prepare a report on its findings for submission to the president.

The next step will be a Federal Register Notice providing information about the upcoming public hearing.

For more on section 232 investigations, please see Crowell’s Client Alert from the steel case.

For more information, contact: Dan Cannistra, Alan W.H. Gourley, Alex Schaefer, Jeff Snyder, John Brew, Bob LaFrankie, Charles De Jager

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Photo of John Brew John Brew

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations…

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations on matters involving customs administration, enforcement, compliance, litigation, legislation and policy.

John represents clients in proceedings at the administrative and judicial levels, as well as before Congress and the international bureaucracies that handle customs and trade matters. He advises clients on all substantive import regulatory issues handled by U.S. Customs and Border Protection and Immigration and Customs Enforcement, such as classification, valuation, origin, marking, tariff preference programs, other agency regulations, admissibility, import restrictions, quotas, drawback, audits, prior disclosures, penalties, investigations, Importer Self Assessment and Customs-Trade Partnership Against Terrorism programs, importations under bond, the Jones Act, vessel repairs, and foreign trade zone matters.

Photo of Robert L. LaFrankie Robert L. LaFrankie

Robert L. LaFrankie is a partner in Crowell & Moring’s International Trade Group and resident in the firm’s Washington, D.C. office. Bob regularly advises manufacturers, exporters, and importers in all aspects of international trade and customs proceedings before various government agencies, courts, and…

Robert L. LaFrankie is a partner in Crowell & Moring’s International Trade Group and resident in the firm’s Washington, D.C. office. Bob regularly advises manufacturers, exporters, and importers in all aspects of international trade and customs proceedings before various government agencies, courts, and international tribunals. He focuses on trade-related litigation and counseling, including trade remedy proceedings and U.S. Customs compliance and enforcement issues. Bob has successfully defended numerous clients located throughout Asia, Europe, and the Americas that produce or import a diverse range of products, including flat-rolled and specialty steel products and components, chemicals and plastics, frozen and canned food products, paper products, motor vehicle parts and components, specialty valves and valve systems, disposable lighters, petrochemical and renewable fuels, anti-friction bearings, and other manufactured products. In addition to litigation and compliance counseling, Bob engages in strategic trade remedy and customs planning activities for clients, particularly for companies with global sourcing, manufacturing, and export/import operations. He also advises companies with regard to NAFTA compliance issues and related audits of client facilities.

Photo of Alan W. H. Gourley Alan W. H. Gourley

Alan W. H. Gourley is a partner in the Washington, D.C. office of the law firm of Crowell & Moring and serves as a member of the Steering Committee for the firm’s Government Contracts Group. He graduated magna cum laude from Beloit College…

Alan W. H. Gourley is a partner in the Washington, D.C. office of the law firm of Crowell & Moring and serves as a member of the Steering Committee for the firm’s Government Contracts Group. He graduated magna cum laude from Beloit College in 1977 and from the University of Virginia School of Law in 1981. He is a member of the District of Columbia bar.